On April 10th,A pilot program to connect the Shanghai and Hong Kong stock markets has been approved by China's top securities regulator.

Mutual stock market access between the mainland and Hong Kong will allow mainland and Hong Kong investors to trade easily on the other's market, according to a joint statement by the China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission.

Both markets rallied upon the announcement. HengSeng Index advanced 1.5% while Shanghai Composite rallied 1.38%. Investors are hoping that this program will unify valuation levels for the HK-SH dual listed stocks, mainly blue chip names.